Armenia and the Millennium Challenge Corporation

Washington, D.C.—MCC is concerned about the conduct of the recent election in Armenia and the post-election situation, including recent violence, the imposition of a state of emergency, and restrictions on the freedom of assembly and the press. On March 11, 2008, MCC CEO John Danilovich sent a formal letter to Armenian President Robert Kocharian, warning that the governments actions could have negative effects on the country’s eligibility for MCC funding. MCC is presently reviewing the operational aspects of its ongoing work in the country in light of these events, and is closely monitoring the situation with government and donor colleagues.

Regarding the situation, MCC CEO John Danilovich stated, ”“As a friend and major proponent of long-term economic growth, stability, and democracy in Armenia, we have an obligation to ensure that our programs operate in the democratic environment for which their funding was granted. MCC signed its $235.6 million compact with the people of Armenia based on the country’s continued policy performance. A demonstrated commitment to democratic practices plays an integral role in maintaining eligibility for MCC funding.”“

MCC compact eligibility is based on a country’s performance based on a set of 17 independent eligibility indicators. As part of MCC’s unique approach to government assistance, partner countries must adhere to these indicators in order to receive funding for a large-scale poverty reduction grant, or MCC Compact.